additional pension contribution , tax code query

[davidc1]

Hi ,

does your tax code take into account your pension (avc) contibutions at all.

sorry if this is a silly question , but I stopped paying into a very small AVC last year , and my accountnant has now advised that i now have a tax liability , and the revenue assumed i was still paying AVC.

thanks in advance,

david.

[LeoSayer]

davidc1 said:

Hi ,

does your tax code take into account your pension (avc) contibutions at all.

sorry if this is a silly question , but I stopped paying into a very small AVC last year , and my accountnant has now advised that i now have a tax liability , and the revenue assumed i was still paying AVC.

I guess it would do if youe earnings are in the range where your personal allowance is removed ie. £100k to £120k.

[bogie]

Yes, it can do. If you pay regular amount in for a few years they may have included in your tax code, then when you stop paying it and dont let them know, its still in there...so you may end up owing money.

You do need to keep an eye on coding notices, and examine what they are including. If something changes let them know. You can do it all online at HMRC website, only takes a few mins to amend your code etc. Same way you do self assessment each year.